Credit & Collections
In order to comply with VAT regulations, for any sale of more than R50, you have to issue a tax invoice, with the word "tax invoice" printed on it. This is the most important document in the VAT system. The VAT Act prescribes that a tax invoice must contain certain details about the taxable supply as well as the parties to the transaction. This includes the value of the goods/services excluding VAT, and the VAT amount (calculated at 14% of the above amount), among others.
Collecting on invoices is vital for maintaining cash flow.
At one time or another, you may have to apply for a loan or overdraft to expand your business, buy equipment or finance some other aspect of your operations. This is when having a good credit history becomes very important. Establishing and maintaining a good credit record takes time and can be challenging during tough financial times. This is why you should not obtain credit for unnecessary expenses. This article looks at how to keep your credit record clean.
Every SME owner needs to ensure that they become more professional in the collection of monies due to them.
If you find yourself spending lots of time every month reconciling your bank statement and still aren't able to nail it down to the penny, our specially designed monthly bank reconciliation form contained in the attached file might be able to help you. It can help make the process far less painful and much more accurate, and will even do some of the clerical work for you. Just put in the account balance shown on your bank statement, your deposits in transit, your outstanding checks, and your account balance according to your books in the spaces provided.
The National Credit Regulator (NCR) was established as the regulator under the National Credit Act No. 34 of 2005 (The Act) and is responsible for the regulation of the South African credit industry. It is tasked with carrying out education, research, policy development, registration of industry participants, investigation of complaints, and ensuring the enforcement of the Act. The Act requires the Regulator to promote the development of an accessible credit market, particularly to address the needs of historically disadvantaged persons, low income persons, and remote, isolated or low density communities.
Sometimes people resign from a business and due to a number of different circumstances, they still owe money to their previous employer.
As a small business owner, it is important to know all about credit.
Tips for collecting on overdue accounts.